GS-E-23

APPENDIX E4 - COST LOADING

1) The Baseline Programme shall be cost loaded for the acceptance of the
Engineer.

2) The cost allocated to activities shall be compiled, tabulated and submitted

with each Baseline Programme submission in the form of a Baseline
Schedule Report (see attached sample format). The information shall be
filtered out from the cost-loaded programme and shall include only activities
with cost loading. Activities in the report shall be organised by Phase, Area,
Location, Location Details, Major Items and Minor Items, and show the
subtotal and grand total of the activities. The report shall be sorted in
ascending order by Activity ID with details of Activity Description, Activity
Duration, Early/Late Start and Finish dates and Activity Cost. Activity cost
shall be shown in Singapore dollars or Singapore dollar equivalent as the
monetary currency.

3) In respect of progress payments made under Clauses 64.4 and 64.5.1 of the
Conditions of Contract for construction items, the value of Works shall be
determined from the cost of the activities as identified in the accepted
Baseline Schedule Report and the value of the Works executed shall only
become payable upon completion at specified stages of each construction
activity unless expressly provided otherwise. The specified stages of
activities are 25%, 50%, 75%, 90% and 100%.

4) The requirements for cost loading the programme for the Engineer’s
acceptance are as follow:

a) All activities in the Baseline Programme and programme for options

shall be cost loaded with the budgeted cost allocation including those
with zero cost, such that the subtotals in the Baseline Schedule Report
or Major Items of Work tally with the respective items in the summary
of Tender Price. Where possible, activity costs should tally with those
in the itemised Summary of Tender Price. However, this may not
always be possible and the emphasis must always be that the
programme shall be scheduled based on a logical grouping and
sequence of work taking into account the specified key dates.

b) The Baseline Programme submission shall include a Tabulation of the

Baseline Activity Cost in addition to showing the Tender Programme
Activity Cost for similar activities. The Contractor shall explain for each
and every activity if the cost loading at Baseline submission differs from
the tender submission. The Contractor shall also explain if the sub-total
of all the activity costs for major items in the Summary of Tender Price
differs from those submitted during Tender Stage.

c) The Contractor shall explain the make-up of all the cost loaded
activities. This explanation can be in the form of a narrative with

CONTRACT T307
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APPENDIX E4 - COST LOADING

supporting tabulations. Where the cost loading of a particular activity

etc that is common with other items in the Summary of Tender Price,
the Contractor shall explain clearly the breakdown contributions from
each of the other items in the Summary of Tender Price.

d) Where the Contract Price is different from the original tender price, the
Contractor shall explain each item with cost implications listed in the
Derivation of the Revised Tender Sum and its impact on related cost
loaded activities when submitting his cost loaded programme after
Contract award.

e) The cost allocated to each activity shall generally be not less than
Singapore Dollars One Hundred Thousand (S$100,000), and not more
than Singapore Dollars Five Hundred Thousand (S$500,000). The
Engineer may accept cost loading exceeding the specified range if
necessary. Cost shall be assigned as a lump sum under a resource
entitled "COST" for each activity using the “Budgeted Cost” field in the
Primavera programme.

f) All interface, co-ordination and off-site activities shall be allocated with

zero cost. The costs of these activities shall be distributed to other
activities.

g) Cost loading of activities shall be applicable for construction activities

only, unless agreed by the Engineer.

h) Payment for “Preliminaries” Activities not involving actual construction

should fall into one of the following categories:

i) Payment for each stage of the Design Activities as stated in the

General Specification shall not be approved until the acceptance
of the Design Submissions by the Engineer for the particular
stage of the design.

ii) Costs that cannot be associated with a single activity shall be

spread over the related activities. The Contractor shall propose
the weightage for the allocation of the cost over the duration of
the Contract subject to the acceptance by the Engineer.
Payment shall be made upon completion of each task based on
the accepted cost distribution.

iii) The Contractor shall allocate a sum of Singapore Dollars Thirty

Thousands (S$30,000) for the submission of the Agreed
Schedule of Rates for the Works (see Clause 6 below). This
amount shall be paid to the Contractor upon acceptance of the
Engineer.

CONTRACT T307
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APPENDIX E4 - COST LOADING

i) Reinstatement work shall be cost loaded.

j) Where applicable, as-built information and drawings shall be submitted

in stages as works are progressed and completed. Provision of as-
built information and drawings shall only be cost loaded to one single
payment milestone and payment will be certified after all as-built
information and drawings have been accepted by the Engineer.

k) Unless otherwise stated, the cost loading of items shall comply with the
Contract Document on the specified percentages of 0.5% for as-built
information and 1.5% for environmental, safety and security
considerations.

l) All manufacture/ fabrication, shipment/ delivery and material items/

activities shall be allocated with zero cost, in accordance with the
requirements of the Conditions of Contract. However, it is acceptable to
cost load delivery activities for precast concrete tunnel segmental lining
rings and viaduct beams if they are shown as separate activities from
their installation activities.

m) It is acceptable to cost load delivery activity for Tunnel Boring

Machines (TBMs). TBM delivery shall be paid in stages as follow:

i) 75% upon delivery to site, assemble and commissioning of the

TBM; and upon submission of the Bills of Lading; and

ii) 25% upon completion of initial drive.

n) Backups such as wagons, locomotives etc. are not part of the TBM and
no separate payment shall be made.

o) No payment shall be made for mobilisation of all other construction

equipment.

p) Tunnel segmental lining rings and viaduct beams brought to site

prematurely shall not be paid. For tunnel segmental lining rings, only
segment forming a complete tunnel lining shall be considered for
payment.

q) All descriptions of activities with cost loading which are vague,

ambiguous or not quantifiable; e.g. Mobilisation 1, 2…, ; CD Works 1,
2…, Preliminaries 1, 2…, Excavation 1,2…, Plumbing 1, 2…, etc. will
not be accepted.

CONTRACT T307
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APPENDIX E4 - COST LOADING

r) The cost loading of the activities under the Provisional Sum sub-
contracts shall be carried out during the tender of the respective
Provisional Sum sub-contracts. Upon award of each of these
Provisional Sum sub-contracts, the Contractor shall resubmit for the
Engineer's acceptance the detailed Provisional Sum activities with cost
loading totalling to the awarded Provisional Sum sub-contract Price.
The Clauses herein for cost loading shall apply to all Provisional Sum
activities.

s) For time-related expenditure, lump sum amounts shall be distributed

uniformly over the duration of the period of expenditure to reflect the
costs incurred on monthly basis.

t) Provisional Quantity and items are to be cost-loaded separately, where

possible. Provisional Sums are to be cost-loaded separately.

5) The Contractor shall submit the detailed price breakdown in hard and soft
copy within three (3) months from Contract award for the Engineer's
acceptance and explain or identify all the items that make up the cost of the
various items as priced in the Summary of Tender Price. The Engineer may
order the resubmission of the detailed price breakdown if the total cost differs
from the awarded Tender Price or if there are discrepancies.

6) The Engineer will reject the Baseline Programme if he has reason to believe
that the cost loading does not reflect the actual cost of the activity or costs are
distributed upfront on early construction activities.

7) Cost loading of activities shall comply with the terms of payment in

accordance with the Conditions of Contract and the Agreed Schedule of
Rates for the Works, Summary or Breakdown of Tender Prices. The Engineer
reserves the right to level out the cost of activities which the Engineer is of the
opinion that the activities are front loaded with costs that do not reflect the
expected expenditure to be incurred. The Contractor shall explain fully how he
reconciles the cost loading of all the activities with the amounts indicated in
the Summary or Breakdown of Tender Prices.

CONTRACT T307
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APPENDIX E4 - COST LOADING

Contractor's Name

Contract Number & Title

BASELINE SCHEDULE REPORT

Original Early Late Early Late Activity (MAJOR

Activity ID Activity Description
Duration Start Start Finish Finish Cost ITEM)
Bored Tunnel CC28 to CC29 (AREA)

General (LOCATION)
59ACON29000 BT CC28-CC29 Environmental Safety & Security 3,000,000 TUN
Subtotal 3,000,000

Inner Bound Tunnel (LOCATION)

59ACON30010 BT CC28-CC29 INB Assemble TBM 200,000 TUN
59ACON30020 BT CC28-CC29 INB Initial Drive CH10000-60 (60m) 100,000 TUN
59ACON30030 BT CC28-CC29 INB Main Drive CH10060-200 (140m) 200,000 TUN
59ACON30040 BT CC28-CC29 INB Main Drive CH10200-500 (300m) 300,000 TUN
59ACON30050 BT CC28-CC29 INB Main Drive CH10500-800 (300m) 300,000 TUN
59ACON30060 BT CC28-CC29 INB Dissemble & Retreive TBM at UPL 150,000 TUN
59ACON30070 BT CC28-CC29 INB 1st Stage Concrete (CH10000-400) 180,000 TUN
59ACON30080 BT CC28-CC29 INB 1st Stage Concrete (CH10400-800) 180,000 TUN
59ACON30090 BT CC28-CC29 INB Fix cable brackets 100,000 TUN
Subtotal 1,710,000

Outer Bound Tunnel (LOCATION)

59ACON30110 BT CC28-CC29 OTB Assemble TBM 200,000 TUN
59ACON30120 BT CC28-CC29 OTB Initial Drive CH10000-60 (60m) 100,000 TUN
59ACON30130 BT CC28-CC29 OTB Main Drive CH10060-200 (140m) 200,000 TUN
59ACON30140 BT CC28-CC29 OTB Main Drive CH10200-500 (300m) 300,000 TUN
59ACON30150 BT CC28-CC29 OTB Main Drive CH10500-800 (300m) 300,000 TUN
59ACON30160 BT CC28-CC29 OTB Dissemble & Retreive TBM at UPL 150,000 TUN
59ACON30170 BT CC28-CC29 OTB 1st Stage Concrete (CH10000-400) 180,000 TUN
59ACON30180 BT CC28-CC29 OTB 1st Stage Concrete (CH10400-800) 180,000 TUN
59ACON30190 BT CC28-CC29 OTB Fix cable brackets 100,000 TUN
Subtotal 1,710,000

Grand total 6,420,000

CONTRACT T 307